Today we would take a look at the EUR/USD currency pair. The euro spent most of last week decreasing but today the pair opened in the green.
This week will be quite tumultuous for the European single currency. First of all, the OECD will be publishing their economic growth forecast, which will likely not bring very good news for the eurozone, where fundamentals have been quite mixed. Moreover, this week we also expect the minutes from the ECB’s last policy meeting, which will also reveal how the regulator currently feels about the economic climate in the EU and whether we can expect even more dovishness from them. Lastly, this week there will be elections for the European Parliament held all across the EU. This is quite an important event, since EU citizens will be voting for parties in their own countries, who will then send representatives for form the new EU government. It is crucial to watch out for far-right, nationalist parties and how well they do in the elections. With all of this in mind, the EUR will likely remain weak for the next few days, with an increased volatility.
The American dollar right now is close to its highest level in 2019 so far. It is doing well on account of serving as a safety asset. The uncertainty about the United States and China successfully reaching a trade agreement soon is weighing heavy on the financial markets. The sheer amount of data expected this week and the EU elections are yet another source of uncertainty, pushing investors towards the USD. Moreover, the Federal Reserve does not seem inclined to implement an interest rate cut, contrary to what the markets have been bracing for.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1160, with the price currently trading slightly above it. The daily support levels lie at 1.1151 and 1.1141. The daily resistances are located at 1.1170 and 1.1179. The indicators of technical analysis are confident in giving us a strong sell recommendation.
